Investor Presentation Q4 2020.Pdf

Innofactor Interim Report Q4/2020

February 18, 2021 Sami Ensio, CEO

Driving the Modern Digital Organization in the Nordic Countries Start Up – #1 in Selected #1 Microsoft-based #1 Microsoft-based #1 Provider of Cloud Everything for Everyone Micro Segments Provider in Finland Provider in the Solutions and Digital • Innofactor founded by • Microsoft SharePoint • CRM, BI and case Nordics Transformation in the Sami Ensio in Jan 2000 pioneer management included • Cloud transition Nordics • Innofactor’s first Microsoft- • First M&A activities in the offering • Several acquisitions in • Harmonizing offering based product ”Prime” • Reverse IPO, the Nordic countries across the Nordics released NASDAQ Helsinki • 20% growth and 1000 20% EBITDA new long- 100 Revenue term financial target 900 90 Employees 800 80 +33% 700 70 / year 600 60 500 50 +47% / year 400 40 +67% 300 30 / year +91% 20 / year 200 10 100 0 0 Revenue, M€ Employees

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

• 500+ Nordic professionals • 1000+ Nordic customers • Revenue 66+ MEUR and • 15 enterprise level Microsoft • Strong industry EBITDA 10+% (2020) Gold competencies knowledge in private, • 14 offices in Nordic countries • 10+ Microsoft Partner public and membership- • Listed in Helsinki Stock Awards based organizations Exchange (NASDAQ Helsinki), 11 000+ shareholders © 2021 Innofactor Plc Key Trends Driving Innovation

Artificial Intelligence and Machine Learning

Internet of Things (IoT) Robotics

Augmented and Virtual Reality Innovation Enablers Blockchain

Big Data and Social Next Gen Analytics Media Quantum Security Computing

Cloud Mobility

Engage Optimize customers operations

Empower Transform employees products

Engage Optimize customers operations

Data Capture digital signal across business

Intelligence Data + 2 Data Connect and synthesize data intelligence

Action Improve business outcomes

Empower Transform employees products

Engage Optimize customers operations

Data Capture digital signal across business

Intelligence Data + 2 Connect and synthesize data intelligence

Action Improve business outcomes

Empower Transform employees products

Microsoft Office 365 Intelligent business applications ”Sharing” ”Doing” Productivity and collaboration Power Platform Open, flexible, enterprise-grade cloud computing platform

”Knowing”

Source: Microsoft, 2019 Our Mission: Driving the Modern Digital Organization

Driving the Modern MODERNI ORGANISAATIO EMOTIONAALINEN KUVA Digital Organization

Customer Experience Journey

Engage our customers’ customers digitally in a way that’s most convenient for them

Digital Operations Journey Secure Cloud Journey Data-Driven Business Driving the Journey Modern Create business value, Build a secure, accelerate innovation and increase scalable cloud platform Make better decisions Digital productivity by digitalizing operations for our customers’ lever-aging advanced Organization organizations analytics, AI and machine learning Employee Experience Journey

Make our customers’ employees’ daily work more meaningful and productive through personal engagement and modern collaboration

More Personal Digital Customer Experience • Service Design • Websites & Mobile Apps • Digital Customer Service & Marketing Automation

Higher Operational Productivity Secure Cloud Data-driven Driving the • Customer Relationship Management • Enterprise Resource Planning Platform Business Modern • HR & Talent Management • Cloud Infrastructure • Business Intelligence Digital • Quality & Management Solutions • Governance, • Advanced Analytics • Information & Case Management Security & GDPR • Machine Learning Organization • Identity • Internet of Things Management (IoT) • Managed Cloud Modern Employee Experience Services • Digital Collaboration & Modern Work

Implementation and Managed Services and Storyboard Foundation Delivery Adoption Continuous Development

Evaluating the customer’s Defining the structure and Developing, tailoring and Focusing on ensuring that the Ensuring the solution is current state and helping governance needed to deploying the solution based organization and users adopt continuously managed and them shape the digital vision implement new solutions on proven concepts and the new solution so that its developed and meets the for their organization platforms benefits are fully realized organizations future needs

Customer Experience Journey – Engage your customer digitally in a way that's most convenient for them

Digital Operations Journey – Create business value, accelerate innovation and increase productivity by digitalizing your operations

Employee Experience Journey – Empower your employees through personal engagement and modern collaboration tools

Secure Cloud Journey – Successfully design, implement and utilize cloud services and build a secure, scalable cloud platform

Data-Driven Business Journey – Empower your leadership and employees to make better decisions leveraging advanced analytics and AI

Hansel Oy is a joint public procurement unit responsible for tendering, making and maintaining comprehensive public procurement contracts in Finland. In addition, Hansel is responsible for marketing contracts to customers in co-operation with contracting suppliers. Hansel has a total of approximately 90 ongoing framework agreements and dynamic procurement systems, with approximately 500 contracting suppliers selected through competitive tendering. Since 2015, Hansel has been responsible for the government’s e- tendering service. Hansel employs around 100 people.

Hilma (www.hankintailmoitukset.fi) is an online channel for notices on public procurement where procurement units publish notices on public tendering procedures. Companies get real-time information on ongoing tenders and advance information on upcoming tenders from Hilma. There was a need to overhaul the Hilma service, because the service, which has been in use since 2007, had become technically obsolete. In addition, the functions of the service needed to be modernized. Hansel has been commissioned by the Ministry of Finance to carry out the modernization of Hilma.

In December 2018, Hansel selected Innofactor as the supplier of the reform through a public procurement competition. Innofactor’s agile solution is based entirely on modern Azure PaaS technologies and it was implemented using DevOps protocols. The new ”The new Hilma simplifies work related to public procurements and improves the solution makes it easier than ever to publish new notices and find previously published user experience by making it easier to submit procurement notices and find ones. Help is available for choosing the right form, a previous notice can be selected as a interesting notices. In addition, the information can be better exploited for statistical template for a new notice and an already published notice can be edited. The bidder, on the and analytical purposes as national procurement notices are now in line with EU other hand, can search for notices more conveniently and order notices matching their procurement notices. We are very pleased with the co-operation with Innofactor. The search criteria to be sent directly to their inbox. The service was launched in January 2020 project has progressed on schedule and the collaboration has been easy and hassle- and development is still ongoing. free.”

Mikko Saavalainen Jyrki Vepsäläinen Chief Digital Officer Vice President, Sales & Growth © 2021 Innofactor Plc Hansel Innofactor IF Metall Process and System Improvement Using Microsoft Dynamics 365 with Azure

IF Metall is a union striving for gender equality with over 300,000 members working together for the right to a good and secure job. IF Metall operates in large parts of the Swedish industry, including the plastics, pharmaceutical, construction-material, steel, chemical and engineering industries. Almost 30 000 of the members are also elected as representatives, trade unionists, in the workplace. IF Metall consists of 35 departments to which members belong. A department is limited geographically by one or more municipalities and are locally supporting union activities. IF Metall works for the interests of its members and for a democratic and equal society.

Innofactor was selected by IF Metall to implement an optimal system solution for their membership management. Innofactor implemented a modern solution based on Innofactor-MMS (Member Management System) which is fundamentally based on Microsoft Dynamics technology. The solution is called FOKUS and has considerably improved their processes and gained maturity across the organization since it was implemented.

IF Metall wanted to streamline the handling of the members health and dental care fond module since it was conducted manually, in unsupported application and delivered by several suppliers. The new application should be able to seamless integrate to FOKUS and handle fund membership, fund fees, membership notification, fund payments and financial follow up. A key goal was to meet the needs of the various departments by creating parameter setting for each fund. The solution called FRISKUS was developed and implemented by Innofactor using Microsoft Dynamics 365 with Azure Service Bus and Azure Logic App. After customer acceptance, Innofactor carried out training sessions for the project reference group before Go-Live which was very appreciated by IF Metall. The FRISKUS application has initially been implemented at two departments and will be implemented in other departments according to a roll-out plan. ”FRISKUS is an important solution for IF Metall. We have now moved the administration of health and dental care into our core operations. We have The project is considered to have been carried out in a very efficient way, meeting customer simplified the process considerably and are now taking a first step into a cloud- expectations, delivering on time, within budget targets and using the latest Microsoft Dynamics 365 based service. The collaboration with Innofactor worked very well, they were technology. The FRISKUS solution does not only provide a flexible and general solution that meets always close at hand when we were stuck or had questions.” current and future needs, but also has a major impact on the phase-out of legacy systems, consequently reducing IT-costs. Ronny Olsson Tony Engvall Process Owner Project Manager IF Metall Innofactor © 2021 Innofactor Plc Wallenius Wilhelmsen ASA

Better Business Scalability with Microsoft Azure

Wallenius Wilhelmsen is a market leader in RoRo shipping and vehicle logistics, transporting cars, trucks, rolling equipment and breakbulk around the world. The company is up and running 24/7 and 365 days a year and it has 9500 employees in 29 countries. Walllenius Wilhemsen ASA is listed on the Oslo Stock Exchange and it is headquartered in Lysaker, Norway.

As a global company, Wallenius Wilhelmsen needs to be able to scale their business geographically as well as volume-wise. The time to market is becoming critical as the time span is shifting from months and years to weeks and months. Wallenius ”We need a partner, who can design, implement and advise us throughout the Wilhelmsen wanted to modernize their application portfolio and its delivery platform entire process of moving to the cloud. Innofactor has helped them to be better to prepare for the future demands of the business. They see their Digital prepared for the future IT requirements in the logistics business. The consultants at Transformation Program as a key lever of their business strategy in the up-coming Innofactor are highly skilled, capable and easy to work with. In addition, they are years. very dynamic and flexible, if there are any last-minute changes from our side. Therefore, I would be pleased to serve as their reference.” Wallenius Wilhelmsen chose Innofactor as their partner in the renewal process that has been worked on since 2015. Innofactor builds them a future proof digital Roopesh Das Lars Løvf platform, which works in Microsoft Azure. Six of Wallenius Wilhelmsen’s physical SVP of Digital and IT Global Cloud Architect data centers in UK, US and Singapore are transformed to Hyper Scale Cloud. Wallenius Wilhelmsen ASA Wallenius Wilhelmsen ASA Wallenius Wilhelmsen is currently undergoing a significant cloud transformation, but the benefits of it support the company’s long-term goals. Cloud transformation enables faster market speed and better scalability in the future. © 2021 Innofactor Plc Our Purpose: Our Strategic Choices: Our Values and Working Principle:

Innovating to make Customer Innovation the world work better The most Our Mission: Our principle is to put competent Driving the modern people first in everything Nordic teams we do. We want to digital organization create solutions that Accountability make people’s everyday Our Vision: work and life run Leading Nordic digital Innovation Productized smoothly and bring a transformation partner with top and specialized smile to their faces. in the Microsoft ecosystem customers offering

Our Long-Term Financial Goals: Empowerment About 20% annual growth, about 20% EBITDA, positive Proactive and #ModernDigitalOrganization agile way of cash flow and solid financial #PeopleFirst standing in all situations working © 2021 Innofactor Plc #CreatingSmiles Microsoft Has the Leading Ecosystem in Innofactor’s Strategic Focus Areas

• Microsoft is the leading global provider in Innofactor’s strategic focus areas • By focusing on the Microsoft ecosystem Innofactor can attract the best talent and know-how and have close relations to Microsoft • If Microsoft were to lose its leading position in some areas Innofactor could transition to other partners in these areas

© 2021 Innofactor Plc * Source: Gartner 2018–2020, internet ** Source: Nucleus Research 2020, internet Innofactor Competitive Positioning in the Nordic EUR 10 Billion Microsoft IT Services Market ±0% Nordic IT services market Large companies, in every Nordic Country, all 25 billion euro* solution areas, and several technologies - E.g. TietoEvry, CGI and Fujitsu Nordic Microsoft >0% IT-services market 10 billion euro** Our Competitive Advantage: - more skilled local professionals - better productized offering Mid-sized, not in - more flexible mode of operation Mid-sized, in all Nordic Our Competitive Our Competitive every Nordic Countries, Advantage: Advantage: Country, several - leading know-how - leading know-how in focusing on technologies in Microsoft-based Microsoft-based specific - E.g. Siili, Solita, solutions Our Competitive Advantage: solutions solutions Digia, - productized - Trustworthiness of a listed company - stronger industry - E.g. Atea, HiQ, Netcompany and offering - Established processes focus & knowledge and Knowit Precio - Strong customer references. - Broader offering

Small companies, usually only in home market, one solution or one technology * Source: IDC, internet - E.g. Sulava, Cloudriven ja Proactive ** Estimate Microsoft market share to approx. 40%

Markku Puolanne Vesa Syrjäkari N.N. CFO EVP, Biz Dev and Oper Excellence Chief Innovation ja Talent Officer - - PRODUCTS FINLAND SWEDEN DENMARK NORWAY AND SERVICES Sami Ensio Marcus Hasselblad Jørn Ellefsen Jørn Ellefsen President and CEO, Managing Director, Managing Director, Managing Director, Janne Heikkinen Country Manager, Sweden Country Manager, Denmark Country Manager, Norway EVP, Products & Country Manager, Finland Services Digital Business Productized Experience Productivity Solutions Heikki-Harri Kukkonen Anu Pitkänen Mikko Myllys Vice President Vice President Vice President Customers Jarkko Lindroos, Vice President Sales Jyrki Vepsäläinen, Vice President HR Anni Pokkinen, Acting Board of Directors

Sami Ensio Anna Lindén, Chairman Risto Linturi Pekka Eloholma, Heikki Nikku Born in 1971, M.Sc. (Tech.) Born in 1973, M. Pol.Sc. Born in 1957, M.Sc. (Tech.) Born in 1960, M.Sc. (Tech.) Born in 1956 Innofactor’s founder and CEO since VP of Enersense Plc since 2020. Chairman of the Board of Sovelto. CEO of Sitowise Oy as of August 15, President of CGI, 2000. Several positions of trust in the COO of Nokia’s Mobile Networks Programme Director of Aalto 2019. CEO of Nebula 2014–2017 and Northern Europe Federation of Finnish Technology business group until early 2019. University's Radical innovations CEO of Affecto 2006–2013. Former Operations, in 2017- Industries and Confederation of Finnish Several management positions at program 2004–2014. Previously management positions in, for example, 2019. Other Industries, e.g. Vice Chairman of the Nokia since 1998. Extensive Technology Director of Helsingin Setec, Siemens, FinnetCom, and management positions Federation of Finnish Technology background in business leadership and Puhelin (current Elisa). One of Finland's Helsingin Puhelin (current Elisa). at CGI/Logica 2008- Industries.Ownership with related information technology. Ownership most prominent futurists. Ownership Chairman of the Board in LeaseGreen 2017. Ownership: parties: 7,880,237 shares. with related parties: 66,906 shares. with related parties: 1,256,411 shares. Group. Ownership: 83,589 shares. 14, 000 shares. © 2021 Innofactor Plc Innofactor’s Founder and CEO

Sami Ensio, born 1971, M.Sc. (Tech.) Founder and CEO of Innofactor. Previously member of the Omnitele Management Team. Several positions of trust in the Federation of Finnish Technology Industries and Confederation of Finnish Industries, for example, Vice Chairman of the Federation of Finnish Technology Industries. Sami Ensio's specialties include solid and comprehensive know-how of the software industry as well as strategic and operational leadership and managing profitable growth. Sami Ensio was, for example, selected Software Entrepreneur of the year by the Finnish Software Entrepreneurs Association. Education: Master of Science (Technology), technical physics, Helsinki University of Technology (Aalto University), legal studies at the University of Helsinki and general business studies at University of California, Los Angeles UCLA. Shareholding: about 7.9 million shares (circa 21%) More information: https://fi.linkedin.com/in/ensio

Sami Ensio, CEO Jørn Ellefsen Marcus Hasselblad Janne Heikkinen M. Sc. (Tech.) Founder, President and MBA. Managing Director, Country M.Sc. (Tech.) Managing Director, M. Sc. (Tech.) EVP, Products and CEO, Country Manager, Finland, and Manager, Norway. Employed by Country Manager. Employed by Services. Employed by board member. Born in 1971. Innofactor since 2019. Born in Innofactor since 2020. Born in Innofactor since 2015. Born in Ownership with related parties: 1971. Ownership: 75,000 shares. 1968. Ownership: 0 shares. 1974. Ownership: 123,044 7,880,237 shares. shares.

Markku Puolanne Vesa Syrjäkari B.Sc. CFO. Employed by Innofactor sinceM.Sc. EVP, Business Development and August 2019. Born in 1973. Operational Excellence. Employed by Ownership: 10,000 shares. Innofactor since 2017. Born in 1960. © 2021 Innofactor Plc Ownership: 60,000 shares. Financial Information Q4/2020 Results Revenue Despite COVID-19 and an individual project 18.3 M€ write-down made in 2019, Innofactor achieved Growth +4.7% the highest net sales, EBITDA, and order vs. backlog of its history in 2020 Q4/2019 EBITDA The net sales in the fourth quarter of 2020 were EUR 18.3 million, which shows an increase of 4.7 percent compared to 8.7% (14.0%) the previous year. The net sales increased in Finland but continued to decrease in the other countries compared to the 1.6 M€ (2.6 M€) previous year, even though business in other countries did Growth +1.7% pick up towards the end of 2020. (+63.9 %) vs. In the last quarter of the year, the operating margin was Q4/2019 subject to a final write-down and cost item of approximately Order backlog EUR 1 million in total of a project conducted in Sweden in 2019, without which the operating margin would have been approximately EUR 8.1 million (12.3 percent of the net sales). 60.4 M€ Growth +21.4% The order backlog grew to a new historic high, EUR 60.4 vs. million, at the end of the quarter (2019: 49.8), which shows an increase of 21% compared to the same time in the previous Q4/2019 year.

Q1-Q4 Q1-Q4 Change CEO’s comment /2020 /2019 (%)

” The net sales in 2020 were a record-high EUR 66.2 million, which shows an increase of 3.1 percent compared to the previous year. The net sales per active employee were Net Sales 66,146 64,198 +3.1% approximately EUR 121.6 thousand (2019: 120,2), which shows an increase of 1.2 percent.” (kEUR)

“The operating margin (EBITDA) improved by EUR 2.1 million from the previous year and was also a record-high figure, EUR 7.2 million (10.8 percent of the net sales). In the last quarter of EBITDA 7,164 +40.8% 5,089 the year, the operating margin was subject to a final write-down and cost item of (kEUR) (8,134) (+59.8%) approximately EUR 1 million in total of a project conducted in Sweden in 2019, without which the operating margin would have been approximately EUR 8.1 million (12.3 percent of the net sales). Order Backlog 60,402 49,753 +21.4% “The order backlog grew to a new historic high, EUR 60.4 million, at the end of the quarter (2019: 49.8), which shows an increase of 21% compared to the same time in the previous (kEUR) year.

Equity Ratio 42.2% 40.2% +5.0% “The strong operating cash flow and financial position support Innofactor’s strategic goal of (%) (45.5%) (44.0%) profitable growth and securing solid financial standing in all situations, and makes acquisitions possible, if desired .”

Increased revenue is typically Increased order reflected backlog effects immediately in the revenue EBITDA typically with 1 to 2 quarter delay

Distribution of net sales January 1 to December 31, 2020

• Strong customers in both • Recurring revenues from service • Sweden, Denmark and public and private sectors agreements and license sales Norway represented a bring stability in economic bring competitive advantage and significant portion of fluctuations business stability Innofactor’s revenues. • 10 largest customers • Sales of labor moving • Innofactor’s objective is to create a strong account for approximately increasingly to frame agreements 30% of net sales position in all Nordic and continuous maintenance countries work © 2021 Innofactor Plc Innofactor Key Financials, IFRS

Oct 1–Dec. Oct 1–Dec Jan 1–Dec Jan 1–Dec . 31, 2020 31, 2019 Change 31, 2020 31, 2019 Change Net sales, EUR thousand 18,252 17,432 4.7% 66,164 64,198 3.1% *) The handling of lease liabilities in accordance with IFRS Growth of net sales 4.7% 9.7% 3.1% 1.7% 16 had a positive effect of EUR 493 thousand (2019: 411) in the operating margin (EBITDA) in October 1–December 31, 2020, and an effect of EUR 1,994 thousand (2019: 1,676) in Operating result before depreciation and the operating margin (EBITDA) in January 1–December 31, amortization (EBITDA), EUR thousand* 1,585 1,559 1.7% 7,164 5,089 40.8% 2020. percentage of net sales* 8.7% 8.9% 10.8% 7.9% **) In accordance with IFRS 3, the operating result in October Operating profit/loss (EBIT), EUR thousand* 404 480 -16.0% 2,501 795 214.4% 1–December 31, 2020, includes EUR 473 thousand (2019: 507) and in January 1–December 31, 2020, EUR 1,894 percentage of net sales* 2.2% 2.8% 3.8% 1.2% thousand (2019: 1,522) in depreciations related to Earnings before taxes, EUR thousand* 951 271 251.1% 2,050 12 17,234.5% acquisitions, consisting of allocations of the purchase price to percentage of net sales* 5.2% 1.6% 3.1% 0.0% intangible assets. Earnings, EUR thousand* 257 371 -30.8% 1,761 417 322.7% ***) Exchange rate changes related to the Group's internal percentage of net sales* 1.4% 2.1% 2.7% 0.6% debts results in an exchange rate gain of EUR 211 thousand Order backlog 60,402 49,753 21.4% 60,402 49,753 21.4% in accordance with IFRS in January 1–December 31, 2020, but this loss does not affect the cash flow, only the result for Net gearing* 65.6% 71.8% 65.6% 71.8% the financial period, the Group's balance sheet and the Net gearing without IFRS 16 48.8% 49.9% 48.8% 49.9% equity ratio. In October 1–December 31, 2020, an exchange Equity ratio 42.2% 40.2% 42.2% 40.2% rate gain of EUR 685 thousand occurred. Equity ratio without IFRS 16 41.4% 44.0% 41.4% 44.0% ****) The Innofactor Group monitors the number of active Active personnel on average during the personnel. The number of active personnel does not include review period**** 543 538 0.9% 544 534 1.9% employees who are on a leave of over 3 months Active personnel at the end of the review period**** 541 538 0.6% 541 538 0.6% Earnings per share (EUR) 0.0069 0.0099 -30.8% 0.0471 0.0113 316.1%

• Target 1: Ca 20 percent yearly growth, mainly organic growth - Growth was 3.1 percent compared to previous year and grew in Finland but decreased in other countries due to the effects of the coronavirus - The record EUR 60.4 million order backlog supports the revenue growth target - Innofactor has plans for actions to achieve the target in the next few years, for which the covid-19 situation and improved financial status can open new opportunities • Target 2: Ca 20 percent EBITDA - EBITDA was 10.8 percent of revenue, increasing 37.7 percent - Innofactor increased its profitability significantly but still some work needed to reach the 20% profitability target. - Possibilities for improving profitability can be found especially outside of Finland, where there have been significant challenges to the profitability especially during the coronavirus epidemic • Target 3: Positive cash flow and financial solidity in all situations - Innofactor operative was EUR 5.0 million decrease of 19.3 % and equity ratio at the end of review period was 42.2 percent (improved by 2.0 percentage points) - Strong operative cash flow supports the strategic growth target

© 2021 Innofactor Plc Dividend Distribution 2020 ▪ According to the renewed policy, the aim of the Board of Directors is – to pay a dividend regularly each year – to pay about half of the result for the financial period in dividends, taking into account the company's financial position, possible corporate reorganizations and other development needs ▪ Board of Directors propses that – distribute EUR 0.02 per share as dividends – repayment of capital amounting to EUR 0.02 per share – total of EUR 0.04 per share ▪ In addition, Board of Directors proposes that – the General Meeting authorizes the company’s Board of Directors to decide on a potential extra dividend and repayment of capital of maximum EUR 1,639,529 (EUR 0.04 per share taking into account the share issue authorization proposed to the Board of Directors)

© 2021 Innofactor Plc Innofactor’s net sales and EBITDA in 2021 is estimated to increase from 2020, during which the net sales were EUR 66.2 million and EBITDA was EUR 7.2 million. The Impact of COVID-19 to Innofactor’s Business Operations

Negative impacts of COVID-19 Innofactor’s business are evaluated to remain minor in 2021 The most significant negative effects of the coronavirus (COVID-19) on business are estimated to be over

• As a whole, the negative business effects due to the coronavirus in the fourth quarter 2020 were approximately as estimated - Significantly minor than in second and third quarter 2020 - Business improved especially outside of Finland • The coronavirus situation still did not affect Innofactor's ability to produce services for its customers • Since the coronavirus situation got worse after the summer, our employees returned to mainly working remotely on August 7, 2020 • In the Nordic countries in 2020, Innofactor received a total of approximately EUR 0.7 million in support from the states due to the coronavirus • Negative impacts of COVID-19 Innofactor’s business are evaluated to remain minor in 2021

© 2021 Innofactor Plc We Believe that The Coronavirus Will Change The World in The Future - Our Customers' Digital Leap Offers New Opportunities • In the long run, we believe that the digital leap of society caused by the corona epidemic will increase Innofactor's opportunities to grow its business - The capabilities of a modern digital organization are even more important to our customers - It is possible that our customers will relocate some of their operations back to the Nordic countries - We also believe that Microsoft’s position has been strengthened during the corona epidemic - We believe in our potential to increase our market share in the Nordic countries in the future • Innofactor´s vision is to be the leading provider of organizations’ digital transformation in each of the Nordic countries - We believe even more in our chosen Nordic strategy and long-term goals in the post-coronary world - Innofactor continues to actively seek possible new strategic partnerships and our goal is to grow both organically and through acquisitions - The corona epidemic may offer new opportunities that require rapid action - We have drawn up a separate plan, started activly to monitor the situation and obtained additional EUR 3.0 million in senior funding at the end of April

© 2021 Innofactor Plc Other Issues Stock Exchange Releases Q4 • On October 15, Innofactor published a flagging announcement pursuant to Chapter 9, Section 5 of the Finnish Securities Markets Act, stating that Rimonne Baltic OÜ has crossed above the 5% disclosure limit on Innofactor shares and voting rights on October 15, 2020. According to Rimonne OÜ's statement, its share of the shares and voting rights after exceeding the disclosure limit is 5.01% (1,872,000 shares).

• On January 21, Innofactor announced in a stock exchange release that the Finnish Tax Administration has selected Innofactor in a public procurement competition as the primary provider of IT specialist services in the area of Azure programming. On the basis of the volume stated by the customer in connection with the procurement, the total value in this area is approximately EUR 15–25 million. The duration of the framework agreement is 6 years, and assignments started during the framework agreement period may continue 4 years after the expiration of the framework agreement. • On January 29, 2021, Innofactor announced in a stock exchange release that Innofactor and a Norwegian financial services company have signed an agreement concerning the migration and implementation of services to Microsoft Azure. The solution will be built on the Innofactor Virtual Data Center solution. The value of the agreement (excluding VAT) is approximately EUR 500,000 and the services will be delivered during the year 2021.

There are no other significant events in Innofactor after the review period.

© 2021 Innofactor Plc Key points from CEO’s review • Net sales: The net sales in 2020 were a record-high EUR 66.2 million, which shows an increase of 3.1 percent compared to the previous year. • EBITDA: The operating margin (EBITDA) improved by EUR 2.1 million from the previous year and was also a record-high figure, EUR 7.2 million (10.8 percent of the net sales). In the last quarter of the year, the operating margin was subject to a final write-down and cost item of approximately EUR 1 million in total of a project conducted in Sweden in 2019, without which the operating margin would have been approximately EUR 8.1 million (12.3 percent of the net sales). • Order backlog: The order backlog grew to a new historic high, EUR 60.4 million, at the end of the quarter (2019: 49.8), which shows an increase of 21% compared to the same time in the previous year. • Organization: In 2021, Innofactor will pay special attention to management of growth, sales, expertise and resourcing, in connection with which we have revised our organization, among other measures. A Chief Innovation and Talent Officer will start as a new role in April 2021.

© 2021 Innofactor Plc Largest shareholders December 31, 2020 Number % of share Name of shares capital 1. Ensio Sami 7,880,237 21.08% Ensio Sami 5,706,477 15.26% Minor under guardianship 724,588 1.94% Minor under guardianship 724,586 1.94% Minor under guardianship 724,586 1.94% Ilmarinen Mutual Pension Insurance 4.81% 2. Company 1,800,000 3. Hallikainen Jyrki 1,471,009 3.93% 4. Linturi Kaija and Risto 1,256,411 3.36% R. Linturi Oyj 489,107 1.31% Linturi Kaija Anneli 430,000 1.15% Linturi Risto Erkki Olavi 337,304 0.90% 5. Laiho Rami Tapani 1,181,594 3.16% 6. Ärje Matias Juhanpoika 882,065 2.36% 7. Mäki Antti-Jussi 747,192 2.00% 8. Tilman Tuomo Tapani 733,397 1.96% 9. Saarelainen Mika Pekka 600,000 1.60% 10. Ingman Finance Oy Ab 500,000 1.34% 11. Muukkonen Teemu Heikki 473,818 1.27% 12. Järvenpää Janne-Olli 305,211 0.82% 13. Kukkonen Heikki-Harri 301,931 0.81% 14. Rausanne Oy 280,000 0.75% 15. Hellen Stefan Andreas 250,000 0.67% 16. Laiho Jari Olavi 235,000 0.63% 17. Puolakka Petri Yrjö Emil 202,511 0.54% 18. Mäkinen Antti Vilho Juhani 164,000 0.44% 19. Heikki Tervonen Oy 153,000 0.41% Mandatum Life Insurance Company 0.39% 20. Limited 146,044

Innofactor Share Price Development and Turnover (Closing February 16th, 2021 at €1.425) Turnover in % compared total amount of shares 80,0 %

60,0 %

40,0 %

20,0 %

0,0 % 2015 2016 2017 2018 2019 2020

In public trading in January 1–December 31, 2020, a total of 20,099,421 shares were traded (2019: 10,919,321 shares), which corresponds to 53.8 percent (2019: 29.4%) of the average number of shares on the said period. In January 1– December 31, 2020, there were 37,388,225 shares on the Share Price Development average (2019: 36,806,307). The share trading increased Beginning of 2021 +11.76% by 84.2 percent compared to the corresponding period in 1 year change +70.05% Year highest 2020 1.44 EUR 2019. 3 year change +71.48% Year lowest 2020 0.51 EUR 5 year change +63.79% 10 year change -28,75%

Sami Ensio CEO +358 50 584 2029 [email protected]

Markku Puolanne CFO +358 400 694 114 [email protected]